MoneyPlace is a fast-growing, innovative peer-to-peer lender based in Australia, pioneering bespoke interest rates based on user credit history and matching to appropriate investors. MoneyPlace has a vision to make marketplace lending the affordable, efficient alternative to traditional bank loans, rewarding applicants who have excellent credit ratings and providing a service to the unbanked/underbanked Australian population.

“Having seen ThreatMetrix in use, and having seen how well it picks up people you just don’t want on your site, we wouldn’t want to operate without it. That is the level of trust that we have got in the system now.”

Paul Abbey, CRO, MoneyPlace

This democratic lending model relies on scrupulous detection of fraudulent activity to maintain the trust of the lenders and the loan applicants. With ThreatMetrix, MoneyPlace can accurately detect high-risk behavior throughout the application lifecycle. This helps MoneyPlace:

  • Offer the most competitive rates to all applicants
  • Protect lender investments and reduce fraud losses
  • Offer a fast, streamlined loan application service that means trusted applicants experience less friction

“ThreatMetrix has some of the biggest banks and payments providers in the world feeding into its Network, and we can leverage that. It makes us feel protected.”

Paul Abbey, CRO, MoneyPlace

Business Problem

Niche and alternative finance providers are key targets for fraudsters looking to capitalize on innovative lending models. The online environment provides the perfect level of anonymity for cybercriminals looking to test stolen or spoofed credentials.

The key challenge for MoneyPlace was that fraudsters were slipping though the net of credit bureaus and other static data sources. It needed a way of combining the static identity data it sourced from credit bureaus, with dynamic, real-time data about the connecting user’s device, location and behavioral profile.

“ThreatMetrix alerts us to fraudsters that other data sources totally miss. It triggers a flag when device, location or personal information does not correlate to data held in the ThreatMetrix Network. In some cases, these identities have already been passed by other credit bureaus.”

Paul Abbey, CRO, MoneyPlace

Harnessing the Power of Dynamic Shared Intelligence

It’s hard to believe an applicant called “Fake Name” was in MoneyPlace’s system, having been matched to a bureau file that was three years old! This highlights how static identity assessments are virtually ineffective unless combined with dynamic, real-time intelligence about how that user transacts online.

The ThreatMetrix solution passively authenticates MoneyPlace’s loan applicants in real time by correlating the connecting user’s transaction data with dynamic intelligence held in the ThreatMetrix Digital Identity Network.

A Global Network of Digital Identities

The Network collects and processes global shared intelligence from millions of daily consumer interactions including logins, payments and new account applications. Using this information, ThreatMetrix creates a unique digital identity for each user by analyzing the myriad connections between devices, locations and anonymized personal information. Behavior that deviates from this trusted digital identity can be accurately identified in real time, alerting MoneyPlace to potential fraud. Suspicious behavior can be detected and flagged for review, step-up authentication or rejection before a transaction is processed, creating a frictionless experience for trusted users.

Understanding True Location

In the case of “Fake Name,” ThreatMetrix triggered an alert because the transaction location was South London when all the other identity information indicated the user was an Australian resident.

Fraudsters often attempt to hide behind location and identity cloaking services, such as hidden proxies, VPNs and the TOR browser. ThreatMetrix accurately detects the use of these technologies and, in the case of proxies and VPNs, allows MoneyPlace to see the true IP address, geolocation and other attributes of each event, backed by global identity data over time.

Detecting Suspicious Device Behavior

As applicants go through the online approval process, they might have their device profiled by ThreatMetrix perhaps five times. ThreatMetrix can ensure applicants aren’t applying for a loan on one device and then switching to a different device to withdraw funds, which might indicate a mule situation. In addition, ThreatMetrix Smart ID identifies returning users that wipe cookies, use private browsing and change other parameters to bypass device fingerprinting. This improves returning user detection and reduces false positives.

“It has been a phenomenal solution to put in play. The speed at which you can adapt things is just fantastic. ThreatMetrix has got such a vast network; the coverage and hit rate on devices is phenomenal.”

Paul Abbey, CRO, MoneyPlace

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